RIGHTS AND PUBLIC OFFERING OF STOCK

6 Months Ended

Jun. 28, 2014

RIGHTS AND PUBLIC OFFERING OF STOCK

RIGHTS AND PUBLIC OFFERING OF STOCK

13.   RIGHTS AND PUBLIC OFFERING OF STOCK

On May 9, 2014, the Company commenced a rights offering with its existing stockholders, which granted each stockholder the right to  receive approximately 34.2%  of a whole subscription right for each share of common stock owned by such stockholder.  Each whole subscription right entitled the stockholder to purchase one share of common stock at $2.00 per share.  The rights offering resulted in the issuance of 115,377 shares of the Company’s common stock for gross proceeds of $230,754. On June 2, 2014, the Company raised approximately $15.0 million (net of $1.1 million in commission and other offering expenses) from the sale of 9.2 million shares of the Company’s common stock in an underwritten public offering at a price per share of $1.75.   A portion of the proceeds of the public offering (approximately $10.4 million) were used to pay down borrowings under the Credit Facility.